Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>PayPal's Third Quarter 2024 Earnings Summary reveals a period of robust activity, transformation, and strategic realignment under the new leadership of CEO Alex Chriss and CFO Jamie Miller.</li><li>The financial results and operational updates discussed in the earnings call reflect both positive advancements and areas where PayPal continues to face challenges.PayPal reported a total payment volume of $423 billion, representing a 9% year-over-year growth, and revenue of $7.8 billion, which grew 6% on a currency-neutral basis.</li><li>Non-GAAP earnings per share increased by 22%, indicative of strong profitability.</li></ul>

PayPal's Third Quarter 2024 Earnings Summary reveals a period of robust activity, transformation, and strategic realignment under the new leadership of CEO Alex Chriss and CFO Jamie Miller.The financial results and operational updates discussed in the earnings call reflect both positive advancements and areas where PayPal continues to face challenges.PayPal reported a total payment volume of $423 billion, representing a 9% year-over-year growth, and revenue of $7.8 billion, which grew 6% on a currency-neutral basis.Non-GAAP earnings per share increased by 22%, indicative of strong profitability.

PayPal Holdings:  Expansion and Monetization of Braintree and Venmo Services As A Potential Game Changer? - Major Drivers

<ul><li>PayPal Holdings, Inc. delivered a commendable performance in the second quarter of 2024, showcasing growth across various metrics, amidst ongoing strategic transformation efforts.</li><li>The company reported an 11% increase in total payment volume, totaling $417 billion, and a 9% rise in revenue on a currency-neutral basis.</li><li>Additionally, transaction margin dollars grew by 8%, indicating the strongest performance since 2021.</li></ul>

PayPal Holdings, Inc. delivered a commendable performance in the second quarter of 2024, showcasing growth across various metrics, amidst ongoing strategic transformation efforts.The company reported an 11% increase in total payment volume, totaling $417 billion, and a 9% rise in revenue on a currency-neutral basis.Additionally, transaction margin dollars grew by 8%, indicating the strongest performance since 2021.

PayPal Holdings Inc.: Focus on Profitable Growth and Efficiency Driving Our Optimism! - Major Drivers

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

<ul>
<li>We update Klarna’s and Stripe’s IPO valuations based on recent share transactions; Indian payments company Pine Labs is also reported to be looking to IPO</li>
<li>Our 2Q24 recommended shares performance was very mixed, with it being a mainly challenging quarter for long investors in payment companies</li>
<li>We retain Visa as a core holding and also keep PagSeguro and Shift4 as buys, replacing PayPal with European value play Nexi; we keep our sell rating on Affirm</li>
</ul>


We update Klarna’s and Stripe’s IPO valuations based on recent share transactions; Indian payments company Pine Labs is also reported to be looking to IPO
Our 2Q24 recommended shares performance was very mixed, with it being a mainly challenging quarter for long investors in payment companies
We retain Visa as a core holding and also keep PagSeguro and Shift4 as buys, replacing PayPal with European value play Nexi; we keep our sell rating on Affirm


Payment Companies – Updated Sector Overview and Potential IPOs

<ul><li>PayPal Holdings Inc.'s Q1 2024 earnings showcased a solid start for the year with substantial improvements across various sectors of the business, tempered by an understanding of the need for continued retooling and operational changes.</li><li>The company leadership is operating cohesively and the new strategies in place are evidently beginning to make a difference.</li><li>PayPal has maintained steady progress with their three customer groups; large enterprises, small businesses, and consumers, including their subsidiary, Venmo.</li></ul>

PayPal Holdings Inc.'s Q1 2024 earnings showcased a solid start for the year with substantial improvements across various sectors of the business, tempered by an understanding of the need for continued retooling and operational changes.The company leadership is operating cohesively and the new strategies in place are evidently beginning to make a difference.PayPal has maintained steady progress with their three customer groups; large enterprises, small businesses, and consumers, including their subsidiary, Venmo.

PayPal Holdings: Continued Focus On Its Omnichannel Strategy Increasing Innovation & Adoption! - Major Drivers

Event-Driven

<ul>
<li>We explore Klarna’s and Stripe’s IPO prospects and valuations based on recent share transactions; Nuvei and Cielo are close to being taken private, with Worldpay now controlled by private equity</li>
<li>Nuvei and Worldpay both grew by acquisition but failed to deliver on the market’s expected returns, in our view, ending up under PE ownership; is Nexi a potential PE target?</li>
<li>We retain Visa as a core holding and also keep PagSeguro and PayPal as buys, replacing Cielo with new peer group addition Shift4; we keep our sell rating on Affirm</li>
</ul>


We explore Klarna’s and Stripe’s IPO prospects and valuations based on recent share transactions; Nuvei and Cielo are close to being taken private, with Worldpay now controlled by private equity
Nuvei and Worldpay both grew by acquisition but failed to deliver on the market’s expected returns, in our view, ending up under PE ownership; is Nexi a potential PE target?
We retain Visa as a core holding and also keep PagSeguro and PayPal as buys, replacing Cielo with new peer group addition Shift4; we keep our sell rating on Affirm


Payment Companies – Potential IPOs, Select Companies Being Taken Private and Sector Overview

United States

PayPal Holdings, Inc. operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants. The Company offers online payment solutions. PayPal Holdings serves customers worldwide.

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Paypal Holdings (PYPL US)

PayPal Holdings: Expansion and Monetization of Braintree and Venmo Services As A Potential Game Changer? - Major Drivers

PayPal's Third Quarter 2024 Earnings Summary reveals a period of robust activity, transformation, and strategic realignment under the new...

Baptista Research

PayPal Holdings Inc.: Focus on Profitable Growth and Efficiency Driving Our Optimism! - Major Drivers

PayPal Holdings, Inc. delivered a commendable performance in the second quarter of 2024, showcasing growth across various metrics, amidst ongoing...

Baptista Research

Payment Companies – Updated Sector Overview and Potential IPOs

Mixed 2Q24 shares performance, challenging for long investors in payment companies. Visa retained as core holding, with buys PagSeguro and Shift4;...

Victor Galliano

PayPal Holdings: Continued Focus On Its Omnichannel Strategy Increasing Innovation & Adoption! - Major Drivers

PayPal Holdings Inc.'s Q1 2024 earnings showcased a solid start for the year with substantial improvements across various sectors of the business,...

Baptista Research

Payment Companies – Potential IPOs, Select Companies Being Taken Private and Sector Overview

In payments, PagSeguro, Visa, PayPal and Shift4 are buys while Affirm remains a sell. Klarna and Stripe prep for their IPOs, Nuvei and Cielo are...

Victor Galliano

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